Operational Enhancement
A leading power and gas utility in the Northeastern United States operating with multiple ETRM software faced a critical challenge. Their existing ETRM software, essential for managing core operations, was nearing its end-of-support phase, posing a risk to core business processes. Additionally, their regulated business was implementing a separate ETRM solution. Previous support models, including in-house and outsourced IT services, had struggled to meet the evolving needs of the business. The company engaged Value Creed to evaluate the software used by the regulated unit as a potential replacement for the current ETRM software, aiming to consolidate disparate systems into a single, streamlined solution. The chosen system needed to effectively manage front, middle, and back-office activities while seamlessly integrating with the existing technical infrastructure.
KEY RESULTS
20%
Risk Mitigation: Early identification of technical challenges enabled proactive mitigation strategies.
30%
Cost Savings: Cost analysis highlighted potential savings and informed financial decisions.
6 Months
Project Efficiency: Structured approach facilitated timely and resource-efficient decision-making.
A Strategic Approach to Project Success
Value Creed undertook an extensive 8-week assessment to evaluate the suitability of the ETRM solutions:
Understanding Business Needs: Our team conducted comprehensive interviews across the utility’s commodity trading organization to understand its unique requirements, challenges, and objectives. This process identified specific functional and technical requirements essential for the evaluation process. The primary objectives highlighted were:
- Assess the suitability of alternative ETRM solutions versus upgrading the existing system, considering functionality, scalability, and integration capabilities.
- Determine the scope and cost implications of integrating the existing ETRM solution with broader business operations.
- Provide actionable recommendations to ensure the software aligns with long-term strategic objectives and risk management priorities.
Request for Proposal (RFP) Development: Separate, detailed RFPs were crafted and sent to each ETRM solution under consideration, focusing on solution fit, implementation efforts, and supportability to ensure alignment with the utility’s business objectives.
Vendor Demonstrations: Value Creed organized vendor demonstrations to allow stakeholders from both units to interact with the proposed solution. These demonstrations provided valuable insights into the solution’s capabilities in addressing the utility’s business scenarios and requirements.
Evaluation and Feedback: Following the vendor demonstrations, we thoroughly evaluated vendor responses and gathered user feedback from stakeholders. This evaluation compared the solution against the utility’s functional and technical requirements, assessing its suitability as an upgrade to the existing ETRM system.
Cost Analysis: We conducted a comprehensive analysis to establish preliminary cost estimates for the ETRM solutions. This financial assessment enabled the utility to evaluate the feasibility and cost-effectiveness of transitioning to the ETRM system of choice.
Comparative Analysis: Our evaluation revealed that the proposed solution demonstrated comparable capabilities to the current system in various aspects, with notable improvements in reporting and book-structure functionality. However, significant limitations in middle and back-office functionalities were identified compared to the current system.
Final Solution Considerations: The assessment emphasized the need for a multi-year phased project approach, estimated over 18 months, and highlighted technical integration challenges. Given the cost, timing, and functional limitations, we recommended upgrading the current system rather than a greenfield implementation of the proposed solution.
Strategic Guidance: Value Creed’s advisory services provided the company with a clear roadmap for evaluating and selecting a future-state ETRM solution. Value Creed played a crucial role in enhancing the utility’s operational efficiency and ensuring alignment with strategic objectives by offering a comprehensive understanding of requirements, mitigating risks, and providing cost-effective recommendations.
Value Creed Services Mobilized:
Expertise on Demand
Unlock operational effectiveness and elevate the efficiency and reliability of your database through Value Creed’s services. Optimize performance with fast and accurate data extraction, reconciliation, calculation, and reporting.
Advisory
Our Advisory services not only will help you guide your operations but also help you achieve your vision by taking all stakeholders into consideration. Our highly experienced team has combined full lifecycle, functional and technical expertise to deliver frameworks and guidance around building reliable and scalable commodity trading businesses.
Software Selection
Our comprehensive Software Selection process ensures a complete study of the business operations. Workshops help us to understand the key requirements of business operations to design a process map and conduct a gap analysis. With industry-experienced team members, we understand future business needs, playing a vital role in software selection services.
Key Takeaways
Discover the difference with Value Creed’s Advisory services. Benefit from our deep expertise and tailored solutions to drive informed decisions, mitigate risks, and strategically align your operations. Let us empower your organization with insights and guidance that maximize efficiency and effectiveness. Partner with Value Creed to transform challenges into opportunities with our proven track record of empowering organizations for success.
Recommended Resources
Value Creed Undertakes an Extensive Digital Transformation
Performance Challenge Due to manual efforts, a company encountered data analysis challenges that hindered its operations. Generating multiple reports, such as monthly reports for various
Diversified Energy Company Successfully Upgrades CTRM in Three Months with Value Creed’s Testing Services and Expertise On Demand
A diversified energy company based in New York needed to upgrade its CTRM, but had no experience with major technical software upgrades in the past
Case Study: How Value Creed’s CTRM Upgrade Powers a Global Energy Company’s Ambitious Growth Goals
Global Energy Company’s Ambitious Growth Goals Powered by Value Creed’s Seamless CTRM Upgrade The Imperative Challenge A global energy company engaged in natural gas production,
Do More With Your CTRM
Customize & improve business processes with Value Creed’s Implementation Services